Question asked by Nel Hargrave 10 years ago
We received a loan from a private company, and I have set it up as a loan account following the instructions . I can't find anywhere in the guide how to reconcile from my imported bank statement the regular monthly repayments back to the loan account. I keep getting a message saying that clearbooks doesn't associate a payment out to the loan account with a loan account.
Can anyone point me to the right help guide?
Just don't forget to process the interest, once a year will be fine unless you're really fussy and need it doing monthly.
Best answerHi Nel
Have you set the loan as a bank account in Clear Books? If so, the repayment is simply classed as a transfer between accounts.
You'll have to make separate entries relating to any interest though if applicable.
Kevin @ Platform Accounting
Hi Nel,
Kevin is spot on, once again! If you have a regular account and a loan account, then the payment is simply a transfer from one to the other.
Thanks
Chris
Doh! its obvious now! thank you
Just don't forget to process the interest, once a year will be fine unless you're really fussy and need it doing monthly.
Best answerexcellent advice - I would have forgotten that completely. I'll go do it now for last year's accounts.
OK, How do I process interest paid on a loan?
As ever there will be more than one way to skin a cat. One way would be to create a bill payable to the loan company (analysed as 'interest expensed' or whatever the category is, then pay the bill from the loan account.
All being well, the loan account balance within Clear Books should then match your hard copy.
how do set monthly loan payment up to come out monthly, surely you dont have to put in manually each day
How about creating a recurring bill that auto pays itself?
You could also do a recurring journal, only downside there is when you subsequently import your bank statement you'll have to delete the loan repayment transaction each month as you can't reconcile against a journal entry (but you can with a bill as per the first option).
Thanks for your reply, will choose your 1st option seems easier, thanks for your time
Hi everyone!
I've just imported my bank statement and I'm rying to explain a bank loan repayment for a business asset I bought two years ago and I continue to pay every month. Do I explain the payment as payable or receiveable in clearbooks?
Thanks!
Hi Cristina
Have you set the loan up in Clear Books somewhere?
Hi Kevin
No as such no. I couldn't see how I could other than setting up a separate bank account, the loan's bank account...
Do you know if there is a manual for Clearbooks? It would be nice to learn how to use it instead of trying to figure it out or bothering people with endless questioning...
Thanks for your time and help!
That's exactly what you should do, set it up as a bank account (loan account type from the options).
The repayments are then classed as transfers between bank account and loan account.
Help guides here https://www.clearbooks.co.uk/support/guides/ - they're not very indepth but they'll help with the basics in addition to any pointers you need from us on here.
Thank you! You're a life saver! C
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